Types of Companies in Costa Rica

There are several types of companies in Costa Rica you can choose from if you want to start a business here. Discover them below and rely on our local agents for support in registering any of them.

What are the available types of companies in Costa Rica?

• limited liability company;
• joint stock company;
• general partnership;
• limited partnership;
• individual limited liability enterprise (EIRL);
• sole proprietorship.

What business form can I choose if I want to expand a foreign company in Costa Rica?

• subsidiary;
• branch office;
• liaison/representative office.

What is the most popular type of company for foreign investors in Costa Rica?

The private limited liability company is the most incorporated business form. If you decide on it, we can help you open a company in Costa Rica with tailored registration services that start at USD 1,450 for the LLC, which is available through our remote setup solutions.

What are the main features of the LLC in Costa Rica?

The limited liability company (Sociedad de resposabilidad limitada) is a form of business especially used by small businesses. The capital is divided into quotas which cannot be transferable to a third party unless the unanimous votes of the shareholders are in favour of this. One or more managers are appointed to represent the company, shareholders, or third parties.

What are the main characteristics of a Costa Rican stock company?

No minimum share capital is requested at registration, but at least 25% of the authorized capital must be paid at incorporation. The name of the company may be in any language as long as a Spanish translation is provided. The termination SA or Sociedad Anonima must be added to the name.

At least two founders must incorporate this type of company by registering the Articles of Incorporation at the Public Registry, even though after registration only one shareholder is required. Every stock company must have a board of directors, usually formed by the president, a secretary, and a treasurer. Also, a resident agent must be appointed.

What are some important features of partnerships in Costa Rica?

The general partnership is a form of business where two or more investors decide to unite under the same name with the same economic goals. The partners are fully liable for the business’ debts and split the profit equally.

The limited partnership in Costa Rica is formed by a general partner, fully liable for the company’s debts, and a limited partner, liable only to the limit of his contribution to the capital.

What do I need if I want to operate as a sole trader in Costa Rica?

A sole trader may be formed by a single person, liable for the entity’s debts and who can keep the profit for himself. In exceptional cases, his assets may be retained in order to pay the claims of the creditors in case of liquidation.

Is full foreign ownership available for all types of Costa Rican entities?

Yes, it is.

What are some common requirements to open any type of company in Costa Rica?

• defining the ownership: for this, you will need a valid passport if you are a foreign investor;
• management: for certain types of businesses, appointing a director is mandatory;
• securing a registered address in Costa Rica: you can also opt for a virtual office;
• determining the capital needed: for some types of companies, a minimum amount is imposed by law;
• preparing a set of registration documents: Articles of Association are required for limited liability companies, partnership agreements for partnerships, and a standard application form for sole traders;
• residence permit: if you are a foreign businessperson and want to move to Costa Rica, you must also comply with the immigration regulations applied to your country.

Contact us for company formation in Costa Rica.

The company incorporation process in Costa Rica lasts for nearly 5 weeks, while in other countries such as Kuwait can be much longer – 3 months.